Gross margins have compressed significantly from a 74.2% peak in 2024Q1 to 37.9% in 2026Q1, reflecting mounting cost pressures and potential shifts in revenue mix.
| Sales/Revenue | 14.46M | 14.62M | 10.42M | 5.77M | 6.38M | 7.34M | 6.8M |
| Revenue Growth % | 18.05% | 40.27% | 80.74% | -9.59% | -13.08% | 7.82% | - |
| Cost of Goods Sold | 7.76M | 7.26M | 3.24M | 1.93M | 1.54M | 1.41M | 1.34M |
| COGS % of Revenue | - | 49.68% | 31.13% | 33.53% | 24.19% | 19.26% | 19.7% |
| Gross Profit | 6.69M | 7.36M | 7.18M | 3.83M | 4.84M | 5.92M | 5.46M |
| Gross Margin % | 46.3% | 50.32% | 68.87% | 66.47% | 75.81% | 80.74% | 80.3% |
| Gross Profit Growth % | - | 2.49% | 87.27% | -20.73% | -18.38% | 8.41% | - |
| Operating Expenses | 16.27M | 16.94M | 69.33M | 5.71M | 6.52M | 5.67M | 5.06M |
| OpEx % of Revenue | - | 115.88% | 665.25% | 98.97% | 102.15% | 77.3% | 74.36% |
| Selling, General & Admin | 15.72M | 16.94M | 11.86M | 5.38M | 6.3M | 282.67K | 5.06M |
| SG&A % of Revenue | - | 115.88% | 113.81% | 93.3% | 98.77% | 3.85% | 74.36% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 552.5K | 0 | 57.47M | 326.64K | 216.03K | 5.39M | 0 |
| Operating Income | -9.57M | -9.58M | -62.15M | -1.87M | -1.68M | 252.28K | 404.5K |
| Operating Margin % | -66.23% | -65.55% | -596.38% | -32.49% | -26.34% | 3.44% | 5.94% |
| Operating Income Growth % | - | 84.58% | -3217.21% | -11.52% | -765.94% | -37.63% | - |
| EBITDA | -6.94M | -6.93M | -60.83M | -1.87M | -216.03K | 386.34K | 404.5K |
| EBITDA Margin % | -48% | -47.4% | -583.68% | -32.48% | -3.39% | 5.27% | 5.94% |
| EBITDA Growth % | 88.81% | 88.61% | -3147.75% | -766.99% | -155.92% | -4.49% | - |
| D&A (Non-Cash Add-back) | 2.64M | 2.65M | 1.32M | 678 | 1.46M | 0 | 0 |
| EBIT | -11.31M | -11.83M | -4.68M | -1.79M | -1.46M | 386.34K | 404.5K |
| Net Interest Income | -1.97M | -2.81M | -211.46K | -1.82M | 796.66K | 1.97K | 45.03K |
| Interest Income | 0 | 0 | 0 | 358.77K | 922.64K | 1.97K | 45.03K |
| Interest Expense | 1.97M | 2.81M | 211.46K | 2.18M | 125.98K | 0 | 0 |
| Other Income/Expense | -3.7M | -5.06M | 2.81M | -13.38K | 59.92K | 134.06K | -45.03K |
| Pretax Income | -13.28M | -14.64M | -59.34M | -1.89M | -1.62M | 386.34K | 359.47K |
| Pretax Margin % | -91.82% | -100.18% | -569.46% | -32.73% | -25.4% | 5.27% | 5.28% |
| Income Tax | 78.66K | 68.43K | -1.64M | 1.84M | -694.36K | 108.11K | 100.59K |
| Effective Tax Rate % | -0.59% | -0.47% | 2.77% | -97.43% | 42.86% | 27.98% | 27.98% |
| Net Income | -13.35M | -14.71M | -57.7M | -3.76M | -836.21K | 475.9K | 258.88K |
| Net Margin % | -92.37% | -100.65% | -553.69% | -65.26% | -13.11% | 6.49% | 3.8% |
| Net Income Growth % | 78.34% | 74.5% | -1433.43% | -350% | -275.71% | 83.83% | - |
| Net Income (Continuing) | -13.35M | -14.71M | -57.7M | -3.73M | -925.75K | 278.23K | 258.88K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | -325.28K | -362.75K | 0 | 0 |
| EPS (Diluted) | -0.28 | -0.73 | -5.65 | -0.38 | -0.08 | 0.05 | 0.03 |
| EPS Growth % | 86.87% | 87.08% | -1386.84% | -354.55% | -274.9% | 83.85% | - |
| EPS (Basic) | - | -0.73 | -5.65 | -0.38 | -0.08 | 0.05 | 0.03 |
| Diluted Shares Outstanding | 47.9M | 20.14M | 10.21M | 10M | 10M | 9.95M | 9.97M |
| Basic Shares Outstanding | 47.9M | 20.14M | 10.21M | 10M | 10M | 9.95M | 9.97M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Insufficient liquidity for operations
According to recent financial disclosures, VSEEW's year-over-year revenue growth has decelerated significantly from triple-digit peaks in 2024 to a contraction of 4.9% in 2026Q1, suggesting that the initial surge from hospital system deployments is failing to sustain a consistent long-term expansion trajectory for the firm.
The sharp decline in revenue growth indicates that the company may be struggling to convert its specialized iDoc platform into a repeatable, high-volume revenue stream. Investors should monitor whether this deceleration reflects a saturation of the target high-acuity market or simply the inherent lumpiness of hardware-heavy medical technology sales cycles.
As reported in quarterly filings, VSEEW's gross margin has compressed from a peak of 74.2% in 2024Q1 to 37.9% in 2026Q1, indicating that the company is likely facing increased costs of goods sold or a shift toward lower-margin hardware-heavy revenue mixes within its clinical deployments.
This consistent margin degradation suggests that the company lacks the pricing power necessary to offset rising operational costs. The inability to maintain high gross margins implies that the platform's value proposition may be increasingly tied to commoditized hardware rather than high-margin, proprietary software services.
Based on the provided income statement data, VSEEW's operating margin of -57.7% in 2026Q1 highlights a failure to achieve economies of scale, as SG&A expenses continue to outpace gross profit generation, leaving the firm with a persistent and widening gap in its core operational efficiency.
The company appears to be trapped in a high-cost structure where every dollar of revenue requires disproportionate spending on sales and administrative overhead. This lack of operating leverage warrants further investigation into whether the current business model can ever reach a sustainable break-even point without drastic cost rationalization.
Data from recent SEC filings reveals a net margin of -82.3% in 2026Q1, which, when combined with a limited cash position, suggests that the company's current path is potentially unsustainable without significant external capital injections or a fundamental pivot in its core revenue recognition strategy.
Short-sellers would likely focus on the disconnect between the company's specialized clinical narrative and the reality of its deteriorating financial performance. The reliance on non-recurring hardware sales to drive growth appears to be masking a lack of true recurring software adoption, which is essential for long-term viability in the telehealth sector.
Quick answers to the most common questions about buying VSEEW stock.
For fiscal year 2025, VSee Health, Inc. (VSEEW) reported total revenue of $14.6M. This represents a 114.8% increase compared to $6.8M in 2020.
VSee Health, Inc. (VSEEW) reported a net loss of $14.7M for the fiscal year ending 2025.
VSee Health, Inc. (VSEEW) reported an operating income of $-9.6M, resulting in an operating profit margin of -65.6%. This margin reflects the operational efficiency of the business before interest and taxes.
VSee Health, Inc. (VSEEW) generated $7.4M in gross profit for the year, representing a gross profit margin of 50.3%. This demonstrates the company's core pricing power and production efficiency.